By Christos Flessas

The role of APIs in today’s cybersecurity world cannot be overlooked. The global API security market size is projected to grow to USD 3,034 million by 2028, from USD 744 million in 2023, at a Compound Annual Growth Rate (CAGR) of 32.5%. This tremendous growth fuels the API economy, the ever-evolving phenomenon of APIs contributing significant value to businesses of any size and sector, and drives the trends of the API economy.

APIs’ popularity and extensive use make them a favorite target for cybercriminals. Unfortunately, their importance and the associated API-based attacks walk hand in hand and grow in parallel. API security becomes critical to address and mitigate API threats adequately. Recent statistics show that malicious API traffic increased in 2022 by 681% and become more frequent; there has been a 286% increase in API threats quarter over quarter. API economy is quite promising, but fragile.

What is API economy?

While organizations utilize APIs to give better methods to access data and essential capabilities, the API economy refers to how developers can use such APIs both inside and outside the organization.

The API economy is the controlled flow of digital data and services via APIs. It is the value exchange between API consumers and providers. API economy is neither a technological notion nor a financial model. Instead, it represents an ecosystem of mutually beneficial data and digital service exchange.

More generally, employing APIs to expose fundamental business features externally, positions the company as a platform ready for third-party innovation. New market entry points, new revenue streams, and the opportunity to seize untapped company opportunities are all received in exchange.

The API economy continues to thrive, playing a pivotal role in the digital transformation of various industries. It has been rapidly expanding, transforming the way businesses operate and interact with each other. As enterprises leverage APIs to extend their functionalities, streamline business processes, and foster innovation, staying updated on the latest trends is crucial for cybersecurity professionals.

API trends in today’s world

The API ecosystem is an ecosystem full of benefits, including API monetization. Companies can use existing APIs for faster development and go-to-market times. Furthermore, as APIs become more accessible to customers and third parties, they can be customized and updated based on adoption and feedback. Businesses can improve their customers’ experience; the more an API is accepted, leveraged, and relied on, the more consumption data is collected for gauging its success.

On the other hand, the evolution of APIs faces significant cybersecurity challenges. The attack surface expands, and APIs can be potential entry points for cybercriminals. Businesses shall adopt best practices to safeguard their assets from APIs’ sophisticated cyber attacks. With the growing reliance on APIs for data exchange and integration, adequate API security is imperative.

Beyond that, the latest trends that are shaping the API landscape and economy and their implications for cybersecurity professionals are:

• Microservices Architecture Gains Traction: Businesses are transitioning from monolithic architectures to microservices. Each business function is encapsulated in this setup into a distinct service that communicates via APIs. With more microservices, there’s an increase in the number of APIs in use. This decentralization requires a more sophisticated security strategy, emphasizing monitoring, encryption, and authentication.
• GraphQL Takes Center Stage: GraphQL, a query language for APIs, offers a more flexible way to fetch and modify data. It’s gradually overshadowing RESTful services due to its efficiency and reduced over-fetching of data. Although GraphQL provides flexibility, it introduces unique vulnerabilities, such as complex query attacks, that need to be adequately addressed.
• Rise of API Marketplaces: In today’s world, several marketplaces have emerged where developers can find and connect to thousands of APIs, spurring the growth of the API economy. With third-party API integrations, there’s a risk of introducing vulnerabilities or malicious backdoors. It’s paramount to vet and continuously monitor any third-party API integrations.
• AI-Driven API Security: Advanced solutions leveraging AI and machine learning are emerging, automating the detection of API vulnerabilities, understanding usage patterns, and detecting anomalies. While AI-driven tools enhance security, they’re not infallible. They should complement, not replace, human-led penetration testing and security assessments.
• API-first development: More companies adopt an “API-first” approach where APIs are designed before developing the actual software. This enhances the user experience and scalability. As APIs become the backbone, a flaw in the API can jeopardize the entire application. Thus, a security-first approach to API design is critical.
• Enhanced rate limiting and throttling: Businesses are increasingly employing rate limiting and throttling to prevent misuse or overuse of APIs. This ensures that APIs can serve many users without compromising on performance. Implementing rate limiting requires careful planning to avoid potential DOS attacks while ensuring genuine users aren’t adversely impacted.
• OAuth 2.1, the evolution continues: OAuth, the open standard for access delegation, has an update – OAuth 2.1. This version seeks to simplify and enhance the security of token-based authentication. While OAuth 2.1 offers improved security, organizations must stay updated on best practices to implement it correctly, safeguarding against token interception or misuse.

Bloom carefully

The API economy is booming, bringing about innovative solutions and unprecedented connectivity. For businesses and cybersecurity professionals, staying updated on these trends isn’t just beneficial—it’s essential.

API economy can be prospective but needs to be properly safeguarded. As the digital world leans more heavily on APIs, securing them becomes paramount to ensuring a safe, efficient, and progressive digital future.

About the Author: Christos Flessas is a Communications and Information Systems Engineer with more than 30 years of experience as an Officer of the Hellenic Air Force (HAF). He is an accredited NATO tactical evaluator in the Communication and Information Systems (CIS) area and the National Representative (NatRep) at Signal Intelligence CIS and at Navigation Warfare (NavWar) Wrking Groups. Christos holds an MSc in Guided Weapon Systems from Cranfield University, UK. He has also attended numerous online courses such as the Palo Alto Networks Academy Cybersecurity Foundation course. His experience covers a wide range of assignments including radar maintenance engineer, software developer for airborne radars, IT systems manager and Project Manager implementing major armament contracts.

Christos is intrigued by new challenges, open minded, and excited for exploring the impact of cybersecurity on industrial, critical infrastructure, telecommunications, financial, aviation, and maritime sectors.